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COASTALSOUTH BANCSHARES , INC . November 10 , 2021 To our Shareholders : CoastalSouth Bancshares , Inc. ( the " Company " ) is pleased to announce net income of $ 3.3 million , or $ 0.39 per diluted share , for the third quarter of 2021 , as compared to $ 3.3 million net income , or $ 0.40 per diluted share , for the second quarter of 2021. With another strong quarter , the Company is positioned to continue its growth trajectory with increased profitability and balance sheet expansion . " I was pleased with how the Company's growth continued throughout the third quarter , ” said Steve Stone , President and Chief Executive Officer of the Company and its wholly owned subsidiary , Coastal States Bank ( " CSB " ) . " During the quarter , we saw strong loan growth , with an increase of $ 64.1 million in core loans held for investment , as well as $ 58.5 million of deposit growth largely driven by new customer acquisition . We expect this momentum to continue in the fourth quarter , especially now that we have closed our acquisition of Cornerstone Bank . " Highlights for the Third Quarter of 2021 • . Net income of $ 3.3 million , and $ 0.39 diluted earnings per share ( “ Diluted EPS ” ) Total assets grew $ 71.4 million , a 5.7 % increase from June 30 , 2021 • Total deposits grew $ 58.5 million , a 5.3 % increase from June 30 , 2021 . Efficiency ratio of 62.66 % compared to 64.69 % and 65.31 % in the second quarter of 2021 and third quarter of 2020 , respectively • Tangible book value grew to $ 13.52 per share , a 3.4 % increase from June 30 , 2021 During the third quarter , the Company's momentum continued as deposits grew to $ 1.17 billion . This growth was driven by deepening our relationships with existing customers and attracting new customers through our attractive product offerings and our team members ' commitment to a great customer experience . CSB also added several new commercial bankers during the third quarter which also helped to drive deposit growth . During the third quarter , our bankers continued to see strong loan demand and we expect this trend to continue into the fourth quarter . As mentioned above , the Company has continued to recruit and hire talented bankers within our markets to attract new customers and help fuel this growth . Notwithstanding improving loan demand , the Company has a significant amount of liquidity from strong deposit growth . As such , CSB continues to evaluate opportunities to prudently deploy liquidity into earning assets . Core loans held for investment ( " LHFI " ) grew by $ 64.1 million and the Company's investment portfolio grew by $ 59.0 million during the third quarter . Equal Housing Lender Member FDIC coastalstatesbank.com